Course co-ordinator(s): Andrea Sneddon (Edinburgh).
To introduce fundamental practical and technical issues in the actuarial management of UK defined benefit occupational pension schemes.
Learning Outcomes: Subject Mastery
At the end of studying this course, students should be able to:
- describe the calculation of benefits under the following pension schemes: UK state pensions, personal pensions and occupational pension schemes (both defined benefit and defined contribution)
- discuss the advantages and disadvantages of the following features of pension schemes : funding, pay-as-you-go, taxation, accounting requirements, trustees, integration with basic state pension, actuarial reduction and enhancement to pensions
- derive commutation functions appropriate to the scheme design
- show how to value a pension scheme using emerging cost techniques and discuss the relative merits of commutation functions and emerging costs
- calculate the standard fund and standard contribution for the most common funding methods
- describe how to deal with deficits and surpluses
- discuss how the recommended contribution rate and solvency level change for each funding method under differing methods
- describe the features of the asset classes that pension schemes invest
- describe the different purposes of an actuarial investigation
- describe how to determine a valuation basis for economic and demographic assumptions
- perform an analysis of surplus
This course and Life Office Practice will be examined together in a 3-hour exam (80%) at the end of the 2nd semester. Both courses will have an assessed project (10% each).
SCQF Level: 10.
Help: If you have any problems or questions regarding the course, you are encouraged to contact the lecturer
VISION: further information and course materials are available on VISION